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Union Cabinet gives nod to 5% disinvestment in NTPC & 10% in Indian Oil Corporation
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13, 2015No comments Union Cabinet gave its approval to 5 per cent disinvestment in
National Thermal Power Corporation Limited (NTPC) and 10 per cent in Indian Oil
Corporation
(IOC)
National Investment Fund
The Government of India constituted the National Investment Fund (NIF) on 3rd November, 2005,
into which the proceeds from disinvestment of Central Public Sector Enterprises were to be
channelized.
National Investment Fund which is to be maintained outside the Consolidated Fund of India.
The Government on 17th January, 2013 has approved restructuring of the National
Investment Fund (NIF) and decided that the disinvestment proceeds with effect from
the fiscal year 2013-14 will be credited to the existing Public Account under the head
NIF and they would remain there until withdrawn/invested for the approved purpose.
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India and Mongolia have decided to elevate their ties to the level of Strategic partnership. In this
regard a joint statement was issued after the delegation level talks between Prime Minister Narendra
Modi and his Mongolian counterpart Saikhanbileg in Ulaan Baatar. It should be noted that Prime
Minister Narendra Modi is first Indian PM to Mongolia.
Apart from this India and Mongolia signed 13 agreements to further strengthen bilateral ties in
different sectors. They are
1. Revised Air Services Agreement
2. Agreement on Cooperation in the Field of Animal Health and Dairy
3. MoU on Renewable Energy
4. MoU on enhancing cooperation between the border guarding forces.
International Monetary Fund (IMF) in its recent report titled Act Local, Solve Global: The $5.3
Trillion Energy Subsidy Problem has voiced alarm about energy subsidies across the world.
Definition of energy subsidies: The IMF report defined energy subsidies as the difference between the
amount of money consumers pay for energy and its true costs, plus a countrys normal sales or valueadded tax rate. In addition, the true costs include environmental effects like carbon emissions that
lead to global warming and the health effects.
Other reports of IMF World Economic Outlook Reports, The Global Financial Stability
Report
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ECONOMY
Once a bond has been issued and the government has the cash the investor can hold the
bond and collect the interest every year until it is repaid. But investors can also buy and sell
bonds that have already been issued on the financial markets just like buying and selling
shares on the stock market.
The price of the bond will rise and fall according to speculation and analysis by experts.
For example, you bought a Government of India bond. It says Rs.100 / 4% / 2014.
That is, you paid the MRP Rs.100 to Indian Government, and every year theyll pay you 4%
of the Rs.100 until 2014. And on 2014, theyll also repay you the entire Principal of Rs.100
Suppose things go nice and smooth until 2012.
But Then
There is heavy inflation, you cant buy even peppermint for Rs.4 and or
There is a rumor that Government will default and its payment and wont repay you any
money.
In either case, you want to Exit from game before its too late. You want to sell the bond to another
person and recover whatever money possible and reinvest that money in something even safer and
more profitable.
So, you come to sell this bond to me. But I also read the newspapers (except The Hindu), so I know
things are not good with Indian Government or economy, so I wont pay you Rs.100 but only Rs.90 for
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your bond. Youre not in a position to negotiate, youre panicked, you just want to exit from this game
and you fear that if you continue to hold this bond, 15 days from now, people wont even pay you
Rs.50 for it. Thus I buy the Bond worth Oringally MRP of Rs.100, for Rs.90 from you.
Question: why would I do that? Why would I buy a not so good-looking bond from
you?
Ans.
My profit is more than yours! How? Because, You invested Rs.100 and get Rs.4 every year, so
your profit (technically known as Bond-yield) is (4/100) x 100 = 4%.
While I invested Rs.90 and get Rs.4 every year, so my profit (Yield) is (4/90) x 100 =4.44%
which is better than your 4% yield.
I may be speculating that after a month or two, the situation with Indian economy / Inflation
/ Government will improve and then I would be able to buy a peppermint for Rs.4
Around 1,2 million people are employed by the Greece Government this includes clerks,
teachers, doctors, and priestswhich amounts to almost 27 percent of the total working
population of the country (France24 2010). Thus one out of four working Greeks is employed
wholly or partly in the public sector. More than 80 percent of public expenditure goes to the
wages, salaries and pensions of the civil servants.
2. Getting a civil service job in Greece is widely perceived as being granted a sinecure and not as
a contractual obligation to work. The resulting inefficiency of the civil service reinforced a
system of promotions based on seniority and not on merit or talent. One can only move up the
ladder more quickly if one has good connections with politicians and trade unionists.
3. This huge bureaucracy just keeps making laws. From 1974 onwards, 100,000 laws were
passed around 2857 per year!
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4. Then there are rules limiting competition. You pay a fees to lawyers for everything. You need a
degree licence for doing anything in Greece
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In Greece one can find a whole set of laws mandating opening and closing hours of various
enterprises, or defining the geographical proximity where two similar establishments can
operate, setting minimal prices for various professional services, issuing licenses and
preventing or limiting competition.
6. Similar restrictions apply to the operation of drugstores. You are only allowed to own and
operate a drugstore in Greece if you hold a degree in pharmacology. The same applies to
opticians. You can only own a shop selling spectacles if you hold a degree in optics!
7.
If you have a business and you want to advertise your brand or product you have to pay an
amount equal to 20 percent of the advertising expenses to the pension funds of the
journalists.
8. Each time you buy a ticket on a boat, 10 percent goes to the pension fund of the harbor
workers. A part of the ticket price that covers the insurance of passengers goes to the sailors
social security fund.
9. If you sell supplies to the Army, you will have to pay 4 percent of the money to the pension
funds of the military officers. When you buy a ticket at a soccer game, 25 percent of the
amount goes to the pension funds of the police.
10. It is estimated that there are more than 1,000 such levies whose total cost amounts,
according to some calculations, to over 30 percent of the countrys GDP
11. Greece is a society dominated by rent seeking rather than wealth producing activities. The
fact that two thirds of the electorate is living partly or wholly on government hand-outs
significantly affects the ideological narratives that are popular in the country.
In short, Greece is not a country but Air India running MNREGA. And adding insult to the injury,
due to the recession in USA, the tourism and export industry of Greece had took a huge setback.
Whats the EU Exit Rumor?
There are two major parties in Greece.
The right wing party: they say we continue in Eurozone, agree to their demand, cut more jobs
and public spending for receiving more bailout money.
The Left Wing Party: they want to renegotiate the loan-terms with EU and IMF and donot
want to implement any austerity measures. Theyd take a hostile stand against EU, although
in media they say We want to continue in Eurozone but their agenda and gesture speaks
otherwise.
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Ordinary Greeks may queue up to empty their bank accounts before they get frozen and
converted into drachmas that lose half or more of their value. Depositors in other eurozone
countries seen as being at risk of leaving the euro Spain, Italy may also move their money
to the safety of a German bank account, sparking a banking crisis in southern Europe.
Unable to borrow from anyone (not even other European governments), the Greek
government simply runs out of euros. It has to pay social benefits and civil servants wages
until the new drachma currency can be introduced.
The government stops all repayments on its debts, which include 240bn euros of bailout loans
it has already received from the IMF and EU.
The Greek banks who are big lenders to the government would go bust.
Meanwhile, the Greek central bank may be unable to repay the 100bn euros or more it has
borrowed from the European Central Bank to help prop up the Greek banks.
Meltdown
Greeces banks would be facing collapse. Peoples savings would be frozen. Many businesses
would go bankrupt. The cost of imports which in Greece includes a lot of its food and
medicine could double, triple or even quadruple as the new drachma currency is introduced.
With their banks bust, Greeks would find it impossible to borrow, making it impossible for a
while to finance the import of some goods at all.
One of Greeces biggest industries, tourism, could be disrupted by political and social turmoil
(and rioting).
In the longer run, Greeces economy should benefit from having a much more competitive
exchange rate. But its underlying problems, including the governments chronic
overspending, may not go away.
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Businesshouses go Bankrupt
Greek companies who still owe big debts in euros to foreign lenders, but whose main sources
of income are converted to devalued drachmas, will be unable to repay their debts. Many
businesses will be left insolvent their debts worth more than the value of everything they
own and will be facing bankruptcy. Foreign lenders and business partners of Greek
companies will be looking at big losses.
Some contracts governed by Greek law are converted into drachmas (=old currency of Greece
before Euro), while other foreign law contracts remain in euros. Many contracts could end up
in litigation over whether they should be converted or not.
If Greece leaves the eurozone, that will send negative impression among the investors all over
the world, that Eurozone countries are not trustworthy, hence theyll not lend to other
countries such as Spain or Italy and if they lend, theyll charge heavy interest rate.
This could leave the governments of Spain and Italy short of money and in need of a bailout.
These two huge countries together account for 28% of the eurozones total economy, but the
EUs bailout fund currently doesnt have enough money to help them out.
And as explained earlier, they (Spain and Italy) will have to offer more interest rate on new
bonds, because of the Bond Yield problem.
Nervous investors and lenders around the world may start selling off risky investments (i.e.
Bonds and Equities coming from Greece and similar nations) and move their money into safe
havens. Theyll instead prefer to park their money in the gilt-edged securities (i.e. the
Government treasury bonds of US, Japan, Germany etc.)
Thus on one hand, the Greece, Spain and Italy will have to pay high interest rate to borrow
from market, while US, Japan and Germany can borrow more cheaply.
As eurozone governments and the European Central Bank (ECB) face enormous losses on the
loans they gave to Greece, public opinion in Germany may turn against providing the even
larger bailouts probably now needed by big countries like Italy and Spain.
The ECBs role of quietly providing rescue loans to these countries in recent months would be
exposed and could become politically explosive, making it harder for the ECB to continue to
help these troubled nations.
However, the threat of a meltdown might push Europes or the eurozones governments to
agree a comprehensive solution either dissolution of the single currency, or more
integration, perhaps through a democratically-elected European presidency tasked with
overseeing a massive round of bank rescues, government guarantees and growth.
When investors take out their money from Greece, theyll most likely convert it into Dollars
and invest it US. Means less supply Dollar in the international forex market = dollar
becomes more expensive, youve to offer more rupees to buy same amount of dollar.
Some of above investors may also invest in gold, (After loosing faith in bond market). Again
same supply-demand situation. Gold becomes more expensive.
Seeing the situation of Greece people (Pension and job cuts), the citizens of other European
nations will try to save more and more money for the possible bad times ahead = less
spending on luxery items = less demand for indian textiles, polished dimanonds and
automobiles.
Indian businessmen who exported goods and services to Greece earlier, will have trouble
collecting their money.
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f) the card holder's presence in India is detrimental to the interests of the country.
Overseas Citizenship of India (OCI) is provided to a foreign national, who was eligible to become
a citizen of India on 26.01.1950 or was a citizen of India on or at any time after 26.01.1950 or belonged
to a territory that became part of India after 15.08.1947. His/her children and grandchildren are also
eligible for registration as an Overseas Citizen of India (OCI). Minor children of such person are also
eligible for OCI. However, if the applicant had ever been a citizen of Pakistan or Bangladesh, he/she
will not be eligible for OCI.
Following benefits will be given to an OCI:
(a) Multi-purpose, multiple entry, lifelong visa for visiting India.
(b) Exemption from registration with local police authority for any length of stay in India.
(c) Parity with NRIs in respect of economic, financial and education fields except in matters relating to
the acquisition of agricultural/plantation properties.
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The Millennium
Development
Goals (MDGs) are eight international
development goals that were established
following the Millennium Summit of
the United Nations in 2000, following
the adoption of the United Nations
Millennium Declaration. All 189 United
Nations member states at the time (there
are 193 currently), and at least
23 international organizations, committed
to help achieve the following Millennium
Development Goals by 2015.
Indias Progress
India has halved its incidence of extreme
poverty, from 49.4 per cent in 1994 to 24.7
per cent in 2011, ahead of the 2015 deadline
set by the U.N
The report set the limit for extreme poverty
as those living on $1.25 or less a day. The
reduction in poverty is still less than that
achieved by several of Indias poorer
neighbours.
Pakistan,
Nepal
and
Bangladesh have each outstripped India in poverty reduction
While the report says India is on track to achieving the hunger targets, the nation remains home
to 1/4th of the worlds undernourished population, over 1/3rd of the worlds
underweight children, and nearly 1/3rd of the worlds food-insecure people. India has
achieved 11 out of 22 parameters in the report spanning education, poverty, health,
education and so on.
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Target Description
Progress
Signs
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Halve, between 1990 and 2015, proportion of people who suffer from
hunger
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Ensure that by 2015 children everywhere, boys and girls alike, will be
able to complete a full course of primary education
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Have halted by 2015 and begun to reverse the incidence of malaria and
other major diseases
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Manufacturing Sector
Enterprises
Micro Enterprises
Small Enterprises
Medium Enterprises
Service Sector
Enterprises
Micro Enterprises
Investment in equipments
Does not exceed ten lakh rupees:
Small Enterprises
Medium Enterprises
More than ten lakh rupees but does not exceed two crore rupees
More than two crore rupees but does not exceed five core rupees
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